Question: The manager at Stephanie's Furniture Store is trying to figure out how much to charge for a chair that just arrived. If the chair was bought at a wholesale price of $118.00 and Stephanie's Furniture Store marks up all furniture by 60%, at what price should the manager sell the chair?
Solution: In order to find the retail price, we must first find the amount of markup. Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. With this knowledge, we can figure out the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $60\%$ is equivalent to $\frac{60}{100}$ which is also equal to $60 \div 100$ $60 \div 100 = 0.60$ Now you have all the information you need to find the amount of markup! $0.60$ $\times$ $$118.00$ $=$ $$70.80$ Since the markup rate is a percentage of the wholesale price that is added to get the retail price, we can find the retail price with the following equation: amount of markup $+$ wholesale price $=$ retail price $$70.80$ $+$ $$118.00$ $=$ $$188.80$ The retail price of the chair should be $$188.80$.